Analyst: ETH may rally to $4100 after a short-term pullback

On January 16, according to Cointelegraph, futures market trends indicate that ETH may have an additional 10% to 25% upside. However, before any sustained rebound forms, the market may first experience a price decline triggered by forced liquidations. Crypto analyst Pelin Ay pointed out a recurring structural pattern in Ethereum’s leverage dynamics: when the leverage ratio on CEXs rapidly rises above the price, a brief downward shadow (lower wick) appears to clear overly leveraged long positions, often followed by a strong upward rebound. This pattern has occurred multiple times in 2025, especially in February, April, September, and November. Similar situations also happened in October, when a sharp increase in leverage triggered a sudden sell-off, after which the trend continued. Currently, Ethereum’s leverage ratio is about 0.60, which is relatively high. Notably, despite recent price increases, the leverage ratio has not decreased, indicating that market risk appetite still exists. Based on current levels, if a 25% rebound occurs, ETH price will break through $4,100, but the possibility of a slight pullback remains high.